scholarly journals Why has the British National Minimum Wage had Little or No Impact on Employment?

2008 ◽  
Vol 50 (3) ◽  
pp. 489-512 ◽  
Author(s):  
David Metcalf

A century has passed since the first call for a British national minimum wage (NMW). The NMW was finally introduced in 1999. It has raised the real and relative pay of low wage workers, narrowed the gender pay gap and now covers around 1-worker-in-10. The consequences for employment have been extensively analysed using information on individuals, areas and firms. There is little or no evidence of any employment effects. The reasons for this include: an impact on hours rather than workers; employer wage setting and labour market frictions; offsets via the tax credit system; incomplete compliance; improvements in productivity; an increase in the relative price of minimum wage-produced consumer services; and a reduction in the relative profits of firms employing low paid workers.

2021 ◽  
pp. 002218562110128
Author(s):  
Stephen Clibborn

This introduction to the Journal of Industrial Relations’ 2020 Annual Review of Industrial Relations provides an overview of the six Annual Review articles, an international review and two practitioner reviews. The COVID-19 pandemic presented a crisis for the labour market, intensifying serious existing issues such as stagnant wage growth, the gender pay gap and employer non-compliance with minimum wage laws. The pandemic also presented an opportunity for the Australian government to direct its economic stimulus measures in a targeted manner that addressed these existing problems concurrently with the immediate pandemic-related issues. However, 2020 will be marked by this missed opportunity.


2015 ◽  
Vol 37 (6) ◽  
pp. 705-719 ◽  
Author(s):  
Sian Moore ◽  
Stephanie Tailby

Purpose – The purpose of this paper is to explore what has happened to the notion and reality of equal pay over the past 50 years, a period in which women have become the majority of trade union members in the UK. It does so in the context of record employment levels based upon women’s increased labour market participation albeit reflecting their continued over-representation in part-time employment, locating the narrowed but persistent overall gender pay gap in the broader picture of pay inequality in the UK. Design/methodology/approach – The paper considers voluntary and legal responses to inequality and the move away from voluntary solutions in the changed environment for unions. Following others it discusses the potential for collective bargaining to be harnessed to equality in work, a potential only partially realised by unions in a period in which their capacity to sustain collective bargaining was weakened. It looks at the introduction of a statutory route to collective bargaining in 2000, the National Minimum Wage from 1999 and at the Equality Act 2010 as legislative solutions to inequality and in terms of radical and liberal models of equality. Findings – The paper suggests that fuller employment based upon women’s increased labour market activity have not delivered an upward pressure on wages and has underpinned rather than closed pay gaps and social divisions. Legal measures have been limited in the extent to which they have secured equal pay and wider social equality, whilst state support for collective solutions to equality has waned. Its replacement by a statutory minimum wage initially closed pay gaps, but appears to have run out of steam as employers accommodate minimum hourly rates through the reorganisation of working time. Social implications – The paper suggests that statutory minima or even voluntary campaigns to lift hourly wage rates may cut across and even supersede wider existing collective bargaining agreements and as such they can reinforce the attack on collective bargaining structures, supporting arguments that this can reduce representation over pay, but also over a range of other issues at work (Ewing and Hendy, 2013), including equality. Originality/value – There are then limitations on a liberal model which is confined to promoting equality at an organisational level in a public sector subject to wider market forces. The fragmentation of bargaining and representation that has resulted will continue if the proposed dismantling of public services goes ahead and its impact upon equality is already suggested in the widening of the gender pay gap in the public sector in 2015.


2020 ◽  
Vol 62 (4) ◽  
pp. 651-678
Author(s):  
Sophia Seung-Yoon Lee ◽  
Yuhwi Kim

South Korea has a persistent gender pay gap despite its ratification of the Equal Remuneration Convention of the International Labour Organisation (ILO 100) and regulatory commitments to equal pay. This article identifies the extent to which the South Korean gendered dual labour market structure, notably the marked and gendered division between regular and irregular work, presents barriers to gender pay equality, and specifically to the implementation of equal pay principles. A layered examination of employment data, narrowing from aggregate statistics to occupations within two sub-industry groups, is used to examine how pay differences between women and men in work that is similar in content and educational requirements arise from their mode of employment, whether they are employed as regular or irregular workers. These structural divisions in the South Korean labour market are underpinned by a divided wage-setting system within which irregular workers are mostly excluded from benefits such as wage increases arising from seniority, and objective assessments of work value are lacking. In combination, these features help to explain why the principle of equal pay for equal work is breached and why limited progress has been made in meeting the requirements of equal pay for work of equal value.


2004 ◽  
Vol 33 (4) ◽  
pp. 553-571 ◽  
Author(s):  
JUDE BROWNE

It is increasingly argued that models of Corporate Governance can be seen as an effective substitute for conventional state-centred social policy. This article examines the extent to which these contemporary business-led approaches are successful in remedying the gendered pay gap in the British labour market, using the latest Cabinet Office review on women's employment and pay in Britain: the Kingsmill Review, as its central example. The article outlines Kingsmill's recommendations and then analyses their efficacy by means of a ‘snap-shot’ case study of a large employing organisation which was identified as a ‘model employer’ by the Review and which has adopted many exemplary employment practices: the British Broadcasting Corporation (BBC). The article employs analysis of a major original new data set to establish both the successes and limitations of these recommendations in overcoming the gender pay gap within the BBC.


2020 ◽  
Vol 62 (4) ◽  
pp. 630-650
Author(s):  
Ayaka Beniyama

This article examines barriers to the principle of equal remuneration for work of equal value in Japan, reviewing impediments to the implementation of the International Labour Organisation’s Equal Remuneration Convention, and assessing whether the 2018 Work Style Reform Act–which seeks to reduce pay disparities between regular and non-regular workers through a Japanese version of ‘equal pay for equal work’–provides an alternative avenue through which stronger notions of work value and equality might become integrated into Japanese wage-setting norms and practices. This has implications for the gender pay gap, which could be addressed more effectively within a regulatory framework recognising equal pay for equal (value) work as a legal norm, as well as narrowed indirectly through improving remuneration for non-regular workers (the majority of whom are women). The analysis highlights the limits of the new legislative measures, arguing that in spite of some potential for improving pay for non-regular workers, they lack important features conducive to the pursuit of gender pay equality, in particular non-biased concepts of value, effective job evaluation models and a more inclusive gender/human rights perspective.


Author(s):  
Wendy Olsen ◽  
Vanessa Gash ◽  
Hein Heuvelman ◽  
Pierre Walthery
Keyword(s):  
Pay Gap ◽  

2012 ◽  
Vol 27 (2) ◽  
pp. 106-119 ◽  
Author(s):  
Alexander Belgorodskiy ◽  
Barbara Crump ◽  
Marie Griffiths ◽  
Keri Logan ◽  
Raja Peter ◽  
...  

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